South Africa’s Producer Price Index (PPI) inflation slowed in January 2026, with year-over-year growth easing to 2.2% from 2.9% in December 2025. The figures, updated on 26 February 2026, indicate a further moderation in price pressures at the factory gate at the start of the year.
The PPI data are measured on a year-over-year basis, meaning the January 2026 reading compares producer prices with those of January 2025, while the December 2025 figure reflects changes versus December 2024. The step down from 2.9% to 2.2% suggests that cost pressures in the production sector have become less intense, which could, over time, feed into consumer price dynamics and influence policy and market expectations.
This latest reading will be closely watched by investors and policymakers as an indicator of underlying inflation trends in the South African economy, particularly given its role in shaping forecasts for input costs and margins across key industrial sectors.